Holding USDT, world's most popular stablecoin, requires choosing the right wallet. There are myriads of crypto wallets to choose from, and most of them claim to fully support Tether's USDT. How to choose the wallet that is right for you in 2024?
Choosing a cryptocurrency wallet can be challenging for both new and experienced investors due to the wide variety of options available.
Here, we'll do our best to investigate which wallets are ideal for storing USDT. Before we get to the icing on the cake, we will go over security features, distinctions between custodial and non-custodial wallets, exchange wallets vs. personal wallets, and, finally, our personal ranking of the best USDT wallets.
What is USDT?
USDT, or Tether, is a stablecoin pegged to the US dollar, providing stability in the volatile cryptocurrency market.
Its market capitalization and transaction volume have lately reached noteworthy levels. Third-largest cryptocurrency overall, Tether's market capitalization as of October 2024 is almost $119.8 billion. Its value is still fixed in relation to the U.S. dollar, providing investors looking for volatility protection with a consistent digital asset.
Not insignificantly, Tether's USDT on the TRON blockchain lately exceeded Visa's average daily transaction volume. Reflecting the growing worldwide reliance on stablecoins for transactions, TRON recorded over $53 billion in daily USDT transfers while Visa's daily average is $42 billion. With almost 53.7% of its market capitalization, TRON has grown to be the biggest USDT network; Ethereum follows.
Operating across several blockchains, Tether allows users to profit from the security and speed of Ethereum, TRON, Solana, Algorand, and Bitcoin Cash. Together with its general acceptance on big exchanges, this multi-chain support guarantees USDT as a necessary instrument for worldwide cryptocurrency transactions.
Security Features
Importance of Security
Security is paramount when choosing a wallet for USDT. With increasing cyber threats, it’s essential to understand the security measures each wallet offers. You wouldn't want to lose any of your savings, would you?
Securing your crypto doesn't require any special hacker-like knowledge. You don't need coding skills or digital security expertise. All you need is paying attention to some ground rules while choosing the crypto wallet.
Some of this basic knowledge is basically the same as with many other IT-services.
Common Security Features
- Two-Factor Authentication (2FA): Adds an extra layer of security by requiring a second form of verification.
- Encryption: Ensures data is protected by converting it into a code that can only be read with a key.
- Cold Storage: Offline storage that protects funds from online hacks.
- Multi-Signature (Multi-Sig): Requires multiple keys to authorize a transaction, reducing the risk of unauthorized access.
- Biometric Authentication: Uses fingerprints or facial recognition for secure access.
Custodial vs. Non-Custodial Wallets
Here is the moment of truth. Let's try to solve one of the most epical questions since the beginning of crypto. Which wallets are better - custodial or non-custodial.
Custodial Wallets
Custodial wallets are managed by third-party services. The provider holds the private keys, offering convenience but requiring trust in the service.
Advantages:
- Ease of Use: User-friendly interfaces and features.
- Customer Support: Assistance available for issues.
- Backup and Recovery: Simplified processes for recovering lost access.
Disadvantages:
- Control: Users do not have full control over their private keys.
- Security Risks: Centralized control can be a target for hackers.
Non-Custodial Wallets
Non-custodial wallets provide users with full control over their private keys, enhancing security and autonomy.
Advantages:
- Full Control: Users manage their private keys, ensuring complete control over their funds.
- Enhanced Security: Reduced risk of centralized attacks.
- Privacy: Greater privacy as there is no third-party involvement.
Disadvantages:
- Responsibility: Users are responsible for their own security and backup.
- Complexity: May require a higher level of technical knowledge.
In fact, if you are a novice investor with some relatively small amounts of crypto holdings and USDT savings, it might be a good idea to start with a simple custodial wallet. Just to get familiar with the world of crypto.
Yet, as soon as we are talking about some substantial amounts of USDT - think of the sum you wouldn't want to lose at the risk of death - you should better be thinking of a non-custodial wallet.
Exchange Wallets vs. Personal Wallets
A bit of the same discourse here. Use personal wallet or stick to the wallets provided by crypto exchanges? That question goes back a while.
Exchange Wallets
Exchange wallets are provided by cryptocurrency exchanges, offering integrated trading and storage solutions.
Advantages:
- Convenience: Easy access to trading and storage in one platform.
- Liquidity: Quick transfer of funds for trading.
- Features: Additional features like staking, lending, and borrowing.
Disadvantages:
Security Risks: Centralized exchanges can be prime targets for hackers. Control: Users do not have full control over their funds.
Personal Wallets
Personal wallets are standalone applications or hardware devices that provide secure storage for cryptocurrencies.
Advantages:
- Security: Enhanced security features like cold storage and multi-sig.
- Control: Full control over private keys.
- Flexibility: Supports a wide range of cryptocurrencies and features.
Disadvantages:
- Complexity: May require more effort to set up and manage.
- Limited Features: May lack some of the advanced features offered by exchanges.
Top Wallets for USDT in 2024
Here comes the essence of this article. We picked the absolutely best wallets of different types for you. No matter what your needs are, you can pick a wallet for yourself from our top list, and be sure it will fit your needs perfectly.
Ledger Nano X
Ledger Nano X is a leading hardware wallet known for its robust security features.
Pros:
- Cold Storage: Keeps private keys offline.
- Multi-Currency Support: Supports over 1,500 cryptocurrencies.
- Bluetooth Connectivity: Allows easy connection to mobile devices.
Cons:
- Price: More expensive than software wallets.
- Complexity: Requires setup and management.
Trezor Model T
Trezor Model T is another top-tier hardware wallet offering advanced security.
Pros:
- Cold Storage: Secure offline storage.
- Touchscreen Interface: User-friendly navigation.
- Open-Source: Transparent and regularly audited.
Cons:
- Price: High cost.
- Learning Curve: Requires understanding of hardware wallet operations.
Exodus
Exodus is a popular software wallet with a user-friendly interface.
Pros:
- Ease of Use: Intuitive design suitable for beginners.
- Multi-Currency Support: Supports multiple cryptocurrencies.
- Integrated Exchange: Built-in exchange feature.
Cons:
Security: Less secure than hardware wallets. Custodial Elements: Some features require trust in Exodus.
Trust Wallet
Trust Wallet is a mobile wallet known for its versatility and security.
Pros:
- Multi-Currency Support: Supports a wide range of cryptocurrencies.
- Staking: Allows users to earn rewards by staking their assets.
- Decentralized: Non-custodial wallet providing full control.
Cons:
- Mobile Only: Limited to mobile devices.
- Security: Less secure than hardware wallets.
MyEtherWallet (MEW)
MyEtherWallet is a web-based wallet primarily for Ethereum and ERC-20 tokens, including USDT.
Pros:
- Non-Custodial: Full control over private keys.
- Compatibility: Integrates with hardware wallets for added security.
- Open-Source: Transparent and community-driven.
Cons:
- Complexity: May be challenging for beginners.
- Web-Based Risks: Susceptible to phishing attacks.
Coinbase Wallet
Coinbase Wallet is a mobile wallet with strong integration with the Coinbase exchange.
Pros:
- User-Friendly: Easy setup and navigation.
- Multi-Currency Support: Supports a wide range of cryptocurrencies.
- Integration: Seamless connection with Coinbase exchange.
Cons:
- Custodial Risks: Requires trust in Coinbase for some features.
- Limited Control: Not fully non-custodial.
MetaMask
MetaMask is a browser extension and mobile wallet primarily for Ethereum and ERC-20 tokens.
Pros:
- Ease of Use: Simple interface suitable for all users.
- Integration: Compatible with numerous decentralized applications (dApps).
- Non-Custodial: Full control over private keys.
Cons:
- Security: Browser-based risks.
- Limited to Ethereum: Primarily supports Ethereum and ERC-20 tokens.
Atomic Wallet
Atomic Wallet is a decentralized wallet offering extensive features.
Pros:
- Multi-Currency Support: Supports over 500 cryptocurrencies.
- Atomic Swaps: Enables peer-to-peer exchanges without intermediaries.
- Non-Custodial: Full control over private keys.
Cons:
- Security: Software wallet security risks.
- Complexity: Requires some technical knowledge.
Binance Wallet
Binance Wallet is the wallet service provided by the Binance exchange.
Pros:
- Integration: Seamless connection with Binance exchange.
- Multi-Currency Support: Supports a wide range of cryptocurrencies.
- Features: Advanced trading and staking features.
Cons:
- Custodial Risks: Requires trust in Binance.
- Control: Limited control over private keys.
BitPay Wallet
BitPay Wallet is a versatile wallet with strong merchant integration.
Pros:
- Merchant Integration: Supports payments to numerous merchants.
- Multi-Currency Support: Supports multiple cryptocurrencies.
- Security: Offers non-custodial security features.
Cons:
- Complexity: May be challenging for beginners.
- Limited Features: Focused more on payments than advanced features.
Conclusion
Selecting the ideal wallet to carry USDT calls for balancing convenience, security, and control.
Though they cost more and complexity, hardware wallets such as Ledger Nano X and Trezor Model T provide exceptional security. Clearly, a rookie would not want to make that decision. Still, it's most likely the best option available to a real crypto whale. Or at least, for a whale-wannabe.
Though less safe, software wallets such as Exodus and Trust Wallet offer multi-currency capability and easy-to-use interfaces. If you run little crypto mostly from your smartphone, they are ideal.
Exchange wallets need trust in the provider even if they provide convenience and integrated features. Simply sell your USDT for fiat money or easily swap any token you wish for. That's handy, but not for storing sizable savings.
The best wallet for you ultimately comes from your particular requirements and tastes. You and only you will determine what most important to you. You might put security above simplicity of use, or vice versa.